Two Iowa Companies Charged In Federal Court For Fraud
Two local companies have received sentences after pleading guilty to wire fraud in federal court Wednesday.
According to an article in KCRG, Darrell Smith was the broker and advisor for several investment firms. He was also a corporate officer for two Iowa companies; Energae, LP, and I-Lenders LLC.
According to KCRG, Smith would make withdrawals from ten of his investment clients without them knowing or agreeing to the withdrawals between 2010 and 2015. Overall, he took $2.4 million which he then used to pay expenses for Permeate Refining, LLC, which operated a now closed-down ethanol plant in Hopkinton.
According to the U.S. Attorney's Office,
Smith deposited the funds in accounts he controlled through Energae and then used those funds for the operation of Permeate and for other purposes.
Smith would forge client signatures or use pre-signed bank authorization forms without the client’s approval.
Energae, LP, and I-Lenders LLC were sentenced to a year of probation and have been ordered to pay each of the ten victims $1,056,909.68. On top of that, each corporation must also pay a $2,405,409.68 forfeiture money judgment.
This sentence follows the sentencing of Darrel and his brother David Smith.
Darrell Smith of Forest City, Iowa was sentenced to 14 years in federal prison back in October 2018. Along with the prison sentence, Darrell was also ordered to pay the ten victims $1,056,909.68 in restitution. Darrell will also serve a three-year supervised release after his prison term.
David Smith of Pocatello, Idaho was sentenced to two months in federal prison after pleading guilty to one count of conspiracy to obstruct, influence, and impede an official proceeding.